Abstract

This chapter outlines the evolution of Mexico’s payments for hydrological services program from its inception through the first two years of the program’s implementation. Background information on forests, deforestation, and potential environmental services provide context for a political economy analysis of the path the program traveled through Mexico’s legislative and administrative structures. We also analyze the characteristics of the recipients during the first two years, including results from a survey of participants and community case studies. A final section extracts lessons from the Mexican experience, including possible alternative program designs to address some of the problems encountered in its implementation